WATCH (Video): Regulators in this country have promised big changes to the way you’re billed for cable, favouring a “pick and pay” pricing. But, some of this country’s most powerful media leaders warn that change would come at a price. Jacques Bourbeau explains.

-- GATINEAU, Que. – Online delivery services such as Netflix and Google’s YouTube would be harmed if regulations for Canada’s broadcast industry are extended to the digital world, says Google Canada.

The content driver issued the warning Monday at the start of two weeks of Canadian Radio-television and Telecommunications Commission hearings looking at how consumers view and pay for TV programming.

Some of Canada’s conventional broadcasters and distribution firms argue that online platforms should be forced somehow to make mandatory contributions to the country’s television programming system.

The CBC, as one example, argues that the CRTC should require unlicensed content providers and distributors with over $25 million in annual revenues to pay into the Canada Media Fund.

Others, including the media fund itself, along with Ontario’s culture ministry, have questioned whether online services should be exempt from licensing and regulation.

But legitimate online services do, in fact, contribute to the broadcasting system through licensing of content, said Jason Kee, Google’s public policy and government relations counsel.

Canada's broadcast regulator said on Monday it will ignore evidence from Internet-based video providers Netflix Inc and Google Inc when making new rules for television after the companies refused to hand over some data.

In a terse exchange at a regulatory hearing earlier this month, the Canadian Radio-television and Telecommunications Commission (CRTC) demanded Netflix provide details about its Canadian operations or risk losing its exemption from rules that govern domestic broadcast distributors.

The CRTC members, especially the chair, are an embarrassment at this point. A gut reaction would be for the government to shut it down but that is fraught with political complications. The opposition parties have a history of being protectionist when it comes to "Canadian culture" by which they usually mean catering to Toronto and, to a certain degree, French Canada. The tea leaves do not bode well for Internet freedom in Canada. Bandwidth is dominated by a few major telecom companies, the political landscape seems to favour protectionist approaches ( despite denials from the third opposition party) and the established cultural industry, largely Toronto based, sees itself as the guardian of what is Canadian. Very disturbing...